News blog

Longships

BY: Andrew Hore |
POSTED: 04/07/2012 |

Cash shell Longships is using most of its cash pile to acquire shares in Aim new issue Praetorian Resources Ltd, a company whose main participants are involved in the cash shell.

Longships joined Aim in April 2008 when it raised £3.4m. There was still £3m left at the end of 2011. Longships has looked at acquisitions but has not found a suitable candidate. Longships is spending £2.31m on 4.62m shares in Praetorian and it will also receive 2.31m subscription shares which can be converted to ordinary shares for 70p each.

The plan is to transfer these shares to Longships shareholders via a B share issue. Longships will be left with £550,000 in cash and it will continue to seek an acquisition.

Praetorian is joining Aim on 9 July and it intends to acquire stakes in mining businesses. It has already secured shareholdings in Galileo Resources and Sovereign Mines of Africa.

Most of Praetorian’s main men are involved with Longships. Charles Cannon-Brookes is Praetorian’s investment manager and Malcolm Burne is a non-executive director and a member of the execution and advisory team. Both men are also directors of Longships. The other member of the execution and advisory team is former CQS fund manager Richard Lockwood who is a major shareholder in Longships and a non-executive director of Praetorian. Burne and Lockwood have been involved together in the company that became Ambrian Capital as well as at Golden Prospect Precious Metals. Praetorian chairman Robert King is also a director of Golden Prospect Precious Metals.

Longships director Nathan Steinberg is also finance director of Sovereign Mines of Africa.

At 11p a share, Longships is valued at £2.54m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2012_33.pdf

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